PRINCIPLES OF MANAGEMENT: Importance
of Management by Objectives - Part II
Some of the remaining points in the importance of management by
objectives are given below:-
Delegation
of Authority:
The Management by
Objectives strengthens and gives systematic coordination to the organizational
structure of the business or industrial unit. The system gets developed because
of appropriate balance between authority & responsibility.
All the workers, subordinates,
departmental heads and senior levels of managers have complete authority to
discharge the duties, further it is also delegated according to the needs or
requirements of the business or industrial unit. A smooth and harmonious work
environment comes into existence because of Delegation of Authority.
Feeling
of Responsibility:
The Delegation of
Authority towards the performance of job/work for the goal achievement of the
organization creates an inborn feeling of responsibility. As well as, time to
time evaluation of performances and its relation with incentives and promotion
gives a sincere and serious inherent feeling of responsibility. Duties
delegated are supervised and evaluated, so process of job performances are
taken very seriously in a disciplined way. Thus with Authority to perform the
decided objectives, Responsibility towards it develops with sincere feeling.
Best
Communication System:
The Organization
has hierarchical levels of management, so most of the delegation of authority
is done from the top towards the bottom level. A system gets established in
such a way that all information and communication has to pass through these
channels in either way from top to bottom or bottom to top. Timely information
passes from subordinates to management or the other way round, which
establishes cordial and harmonious atmosphere. This provides effective
communication thereby directly improving the efficiency and production of
business or industrial unit.
Coordination:
The Management by
Objectives has a very high value towards coordination and regards it as the
essence of Management. It is the effort of Coordination between all the factors
in the organization, its departments and individual manpower is that all are
equally and systematically coordinated. This stops the chaotic inclination in
the organization.
Control:
The Management by
Objectives takes a pre decided path towards the achievement of objectives of
the unit. All the factors are planned and decided taking the futuristic views
but are mostly analyzed with the actual time bound results. This actual standardized checking and
correction is the backbone of management and is the best possible control in
the process.
Performance
Based System:
The Management by
Objectives compares actual time base results with pre determined projections,
which provides steps and standards for determination of increments, incentives
and other promotion. The performances are the base parameters for any concerned
employee. This generates a feeling of responsibility and human bonding towards
fellow workers and subordinates as well as with senior management. Job
satisfaction & future aspirations gets better developed under such
circumstances.
Profitability:
The Management by
Objectives supports & develops positive environment in the business or
industrial unit where all types of wastages is reduced to minimum and
maximizing the overall production. This helps in reducing the unnecessary
expenses. So the pre determined objectives is achieved within stipulated time
with little or no wastage. Ultimately this process boosts the profitability of
the unit.
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